Migration, education, technological change and growing urban inequality

Hean, Oudom; Chairassamee, Nattanicha; Partridge, Mark D.

doi:10.1007/s00168-023-01207-4

Cited by 2 publications

(1 citation statement)

References 65 publications

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“…Therefore, it is likely that non-MSA counties, with their lower R&D intensity levels, are better suited for offshoring than MSA counties. Also, areas with a high intensity of offshoring activities may experience increased demand and supply of skilled labor, as regional innovation can increase local production of college graduates [ 44 , 45 ]. Our results may explain the insignificant negative effects (or decreased negative effects) of offshoring on U.S. employment in several previous studies [for example 8,20].…”

Section: Discussionmentioning

confidence: 99%

The ripple effects of offshoring in the United States: Boosting local productivity and capital investment

Chairassamee¹,

Hean

2023

PLoS ONE

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We investigate the offshoring effect on local productivity, physical and intellectual capital investment at the U.S. county level from 1999 to 2006. By using regression with fixed effects and instrumental variable to account for possible endogeneity, we find that offshoring can increase overall local productivity and capital investment. Through industry linkages, an increase in productivity and capital investment from offshoring enhances those increases in non-offshoring industries. Industries in both MSA (urban) and non-MSA (rural) counties receive benefits of productivity expansion and capital investment from offshoring. The increased capital investment from offshoring could be a channel of local productivity and capital investment expansion.

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Section: Discussionmentioning

confidence: 99%